Dollar Hits 2-Year High vs Euro

The US Dollar hit a 2-year high
versus the Euro as riots spread from France to Germany and Belgium.

The disorder is hurting the Euro as traders fear it will impact growth and deter
investment in Eurozone assets. The Euro fell against all the major currencies.

Treasuries finally started to move higher, posting impressive
gains on the session after an initial gap higher. With just about everyone
expecting higher interest rates and extrapolating that to mean lower Treasury
prices, a good contrarian bet may be long bonds. The oversold technical
characteristics coupled with very high commercial long position suggests any
rally may have legs.

Energy prices were mixed today, ahead of tomorrow’s hearing in
Washington on excess profits by oil companies. In a typically short sighted move
by politicians energy executives will testify before senators as they decide
whether to impose a windfall tax on the companies.

Heating Oil and Natural Gas declined slightly, with warm
weather still being cited as the main culprit for the decline.

Only a few futures closed +/- 1% as low volatility was par for
the course across asset classes. Not only did stock index futures trade in a
narrow range, the same was true of most of the major commodity markets.

The exceptions being Coffee and Lumber. Coffee closed higher
as Central America, Mexico, Brazil and Vietnam’s harvest were all delayed due to
adverse weather. Lumber also moved up despite Toll Brothers
(
TOL |
Quote |
Chart |
News |
PowerRating)
issuing
disappointing guidance for 2006 (Full
Story
). The news sent the Homebuilders sharply lower.  

TradingMarkets Commodities Watch List

Commodity
(Symbol)
Price Price Change % Change

Energies

Crude Oil (CL) 59.71
+0.24

+0.40
Heating Oil (HO) 177.85
-0.76

-0.43
Unleaded Gas (HU) 156.20
+0.59

+0.38
Natural Gas (NG) 12.56
-0.05

0.41

Metals

Gold (GC) 462.30
+1.90

+0.41
Silver (SI) 762.50
+2.00

+0.26
Copper (HG) 183.80
-0.95

-0.51

Grains

Corn (C)

195.25
+0.50

+0.26
Wheat (W) 313.00
+3.00

+0.97
Soybeans (S) 585.50
+2.50

+0.43

Softs

Sugar (SB) 11.28
-0.07

-0.62
Coffee (KC) 107.85
+5.05

+4.91
Cocoa (CC) 1364.00
+7.00

+0.52
Frozen Orange Juice (JO) 123.75
-0.75

-0.60
Cotton (CT) 50.96
-0.11

-0.22
Lumber (LB) 338.50
+6.20

+1.87

Livestock

Lean Hogs (LH) 63.22
-0.52

-0.82
Live Cattle (LC) 91.72
-0.08

-0.08


Economic News

ICSC-UBS Store Sales:

W/W Change – Actual 1.0%

Ashton Dorkins

ashtond@tradingmarkets.com